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Eligible Dependent Care Expenses

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Reimbursable Expenses for a Dependent Care FSA The purpose of care must be for the well-being and care of the qualifying person, to allow the FSA participant (and, if married, the participant’s spouse) to be gainfully employed or actively looking for work. If married, both spouses must be actively employed, or if one spouse is actively employed the other spouse must be a full-time student or incapable of self-care. All FSA participants, and if married their spouses, must have earned income.

EXPENSES

COVERED

NOT COVERED

GUIDELINES

Adult daycare			The cost of adult daycare is reimbursable. The person must be a qualifying person for the FSA participant. Expenses cannot be attributable to medical care. The qualifying person must regularly spend at least eight hours each day in the participant’s home. Also see Convalescent home; Elder care; In-home care; and Relative, amounts paid to.
After-school care			The cost of after-school care (i.e., following the end of the school day) is reimbursable. Also see Before-school care; Tuition, kindergarten or higher; and Tuition, preschool or nursery.
Agency fee			See Indirect expenses.
Application fee			See Indirect expenses.
Assisted living			See Convalescent home and Elder care.
Au pair			Amounts paid to an au pair are reimbursable. Also see Employment taxes and Room and board. Durable goods (e.g., furniture, etc.) for the au pair's use are not reimbursable.
Babysitter			The cost of a babysitter, whether in or out of the home, is reimbursable. Also see In-home care and Relative, amounts paid to. NOTE: The cost of the babysitter must be for work-related care and not for personal reasons (e.g., while participant and spouse go out to dinner or a movie).
Before-school care			The cost of before-school care (i.e., before the start of the school day) is reimbursable. Also see After-school care; Tuition, kindergarten or higher; and Tuition, preschool or nursery.
Boarding school			See Tuition, kindergarten or higher.
Camp activities			Separately-stated fees for non-elective activities required for day camp participation are reimbursable. Separately-stated fees for elective activities are not reimbursable.
Camp, day			The cost of day camp, including specialized day camp (e.g., soccer camp, computer camp, etc.), is reimbursable. Also see Camp activities and Recreation fees.
Camp, overnight			Overnight camp is not considered an eligible expense. However, the component related to the day care portion, when broken out from the total camp fee, is reimbursable. NOTE: Effective 1/1/08, the cost of overnight camp will not be reimbursable, even when the daytime portion is broken out. The Internal Revenue Service (IRS) does not consider overnight camp to be a qualified dependent care expense.
Care during a layoff or strike			The cost of care while the participant is on strike or has been laid off (e.g., not gainfully employed) is not reimbursable. If actively seeking employment, see Care while looking for work.
Care during a short, temporary absence from work			If the FSA participant must pay for dependent care expenses on a periodic basis (e.g., weekly or monthly) and the absence is short and temporary, the cost of care for a period that includes the absence and the work days is reimbursable. NOTE: The determination of an absence as short and temporary is based on the facts and circumstances of each person’s situation.
Care when participant/ participant’s spouse is employed part-time			The cost of care while the participant or participant’s spouse is employed part-time is reimbursable. For part-time employment, expenses must be allocated between days worked and days not worked. If payment for care is on a weekly or longer basis (i.e., must pay for care for days worked and days not worked), the cost does not have to be allocated.
Care while living in a foreign country			For U.S. citizens working abroad and who are eligible to participate in a dependent care FSA, the cost of care is reimbursable. NOTE: The qualifying person must be a U.S. citizen or national or a resident of the U.S., Mexico or Canada.
Care while looking for work			The cost of care while the participant or participant’s spouse is looking for work is reimbursable. The person looking for work must have earned income for the year. If married, the other spouse must be gainfully employed, looking for work, be a full-time student or be mentally or physically incapable of self-care.
Care while on family, personal or medical leave			Generally, the cost of care while the participant is on leave is not reimbursable. NOTE: Individual facts and circumstances must be reviewed as other factors (e.g., one spouse being gainfully employed while the other spouse is mentally or physically incapable of self-care) may qualify the expense for reimbursement.
Care while participant/ participant’s spouse is working at self-employment			The cost of care while the participant or participant’s spouse is self-employed with net earned income is reimbursable. NOTE: Self-employed persons are not eligible to participate in a flexible spending account (FSA). However, a person participating in an FSA through his or her employer may also be self-employed (separately from his or her employer relationship).
Care while performing volunteer work			The cost of care while the participant is performing volunteer work (e.g., not gainfully employed) is not reimbursable.
Child care placement fees			See Indirect expenses.
Child daycare			The cost of child daycare is reimbursable.
Child of FSA participant, amounts paid to			See Relative, amounts paid to.
Clothing			The cost of clothing is not reimbursable.
Convalescent home			The cost of care in a convalescent home is not reimbursable. The qualifying dependent must reside in the participant's home at least 8 hours per day; see Publication 503 at www.irs.gov.
Custodial care			See Convalescent home and Elder care.
Day camp			See Camp, day.
Daycare, adult			See Adult daycare.
Daycare, child			See Child daycare.
Daycare center			See Adult daycare and Child daycare.
Dependent care center			See Adult daycare and Child daycare.
Deposit			See Indirect expences.
Education			See Tuition, kindergarten or higher and Tuition, preschool or nursery school.
Elder care			The cost of elder care is reimbursable. The elderly person must be a qualifying person for the FSA participant. Expenses cannot be attributable to medical care. The qualifying person must regularly spend at least eight hours each day in the participant’s home. See also Adult daycare; Convalescent home; In-home care; and Relative, amounts paid to.
Emergency daycare			See Employer provided on–site daycare and Sick-child facility.
Employer-provided on-site daycare			The cost of on-site daycare is reimbursable, even when the payment for care is payroll deducted. Also see Sick-child facility.
Employment taxes			When the caregiver is actually an employee of the FSA participant, with respect to providing care, federal employment taxes (FICA, FUTA) and similar state payroll taxes are reimbursable.
Extended daycare			See After-school care and Before-school care.
Extended day program			See After-school care and Before-school care.
FICA and FUTA taxes of daycare provider			See Employment taxes.
Field trips			See Camp activities and Recreation fees.
Food			Separately-stated fees for meals, snacks and other food are not reimbursable.
Foreign country			See Care while living in a foreign country.
Housecleaning services			The cost of housecleaning services is not reimbursable. Also see Household services.
Household services			The cost of household services (e.g., chauffeur, maid, cook, security system, etc.) are not reimbursable. If the person providing the household service also provides care to a qualifying person, the amounts paid for care are reimbursable.
Housekeeper			See Housecleaning services and Household services.
In-home care			The cost of in-home care is reimbursable. Also see Au pair; Babysitter; Nanny; Relative, amounts paid to; and Room and board.
Indirect expenses (agency, application, hold-the-spot or placement fees; deposits)			When required to obtain the care, and if the qualifying person has actually received that care, indirect expenses are reimbursable. When not required to obtain the care or if the qualifying person has not yet received the care, indirect expenses are not reimbursable. Fees that are forfeited (i.e., the participant selects a different caregiver) are not reimbursable.
Kindergarten			See Tuition, kindergarten or higher.
Late fees			Fees for late pickup due to the participant or participant’s spouse’s work schedule (or other work-related reason) are reimbursable. Fee paid for late payment of the childcare bill is not reimbursable.
Lessons			Amounts paid for lessons (e.g. tennis, swimming, piano, karate, horseback riding, basketball, dancing, etc.) are not reimbursable. Also see Camp activities and Recreation fees.
Long-term care expenses			See Convalescent home and Elder care.
Looking for work			See Care while looking for work.
Maid			See Housecleaning services and Household services.
Meals			See Food.
Nanny			Amounts paid to a nanny are reimbursable. Also see Au pair and Room and board. Durable goods (e.g., furniture, etc.) for the nanny’s use are not reimbursable.
Nursery school			See Tuition, nursery school or preschool.
Nursing home			See Convalescent home and Elder care.
On-site daycare, employer-provided			See Employer-provided on-site daycare.
Overnight camp			See Camp, overnight.
Parent of qualifying child, amounts paid to			See Relative, amounts paid to.
Participant’s child, stepchild or foster child, amounts paid to			See Relative, amounts paid to.
Participant’s dependent, amounts paid to			See Relative, amounts paid to.
Placement fees			See Indirect expenses.
Prepaid fees			See Indirect expenses.
Preschool			See Tuition, nursery school or preschool.
Recreation fees			Separately-stated fees for recreational activities and supplies are not reimbursable. Also see Camp activities and Lessons.
Registration fee			See Indirect expenses.
Relative, amounts paid to			Generally, amounts paid to a relative (e.g., grandparent, aunt, cousin) are reimbursable. Exceptions apply; see further explanation immediately below. Payments made to the following persons are not reimbursable: Participant’s spouse Parent of the qualifying child Participant’s child, stepchild or eligible foster child under age 19 Any person who the participant (or participant’s spouse) claims as a dependent.
Room and board			The additional cost of providing room and board, over the usual household expenditures, to an au pair, nanny or other caregiver is reimbursable.
Security system for the home			See Household services.
Self-employment			See Care while participant/participant’s spouse is working at self-employment.
Sick-child facility			The cost of care at a sick-child facility is reimbursable. Also see Employer-provided on-site daycare.
Sick employee			See Care during a short, temporary absence from work.
Snacks			See Food.
Specialized day camp			See Camp, day and Camp, overnight.
Specialized daycare			The cost of specialized daycare is reimbursable.
Sports camp			See Camp, day and Camp, overnight.
Spouse of participant, amounts paid to			See Relative, amounts paid to.
Summer camp			See Camp, day and Camp, overnight.
Taxes			See Employment taxes.
Transportation			When provided by the caregiver, the cost of transporting the qualifying person to and from the care location is reimbursable. When provided by anyone other than the caregiver, the cost of transporting the qualifying person is not reimbursable. All other transportation costs (e.g., air or bus travel by an au pair) are not reimbursable.
Travel expenses			See Transportation.
Tuition, kindergarten or higher			The cost of tuition for kindergarten or higher-level education is not reimbursable. Also see After-school care and Before-school care.
Tuition, nursery school or preschool			The cost of nursery school or preschool (i.e., pre-kindergarten) is reimbursable. Also see After-school care and Before-school care.
Unemployment			See Care during a layoff or strike and Care while looking for work.
Vacation			See Care during a short, temporary absence from work.
Volunteer work			See Care while performing volunteer work.

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